Shade Network faces scam allegations amid privacy layer-2 hype

Shade Network, a newly announced Ethereum privacy-focused layer-2 project, is facing growing scrutiny following scam and phishing allegations.

Critics on social media have warned users about potential wallet security risks linked to the project’s website.

Several analysts have urged users to avoid interacting with wallets or signing transactions connected to Shade Network.

The project markets itself as a privacy-first Ethereum layer-2 amid rising interest in privacy-focused crypto infrastructure.

Shade Network claims it will offer encrypted transaction execution, an encrypted mempool and protection from MEV and front-running.

The network has not yet launched a live blockchain or issued a native token.

Public progress remains limited to branding materials, a waitlist and strong engagement on social media platforms.

Allegations centre on claimed links between Shade Network promoters and a previous project accused of a rug pull.

That earlier project reportedly raised around $1.8 million before users allegedly lost funds through a malicious claim link.

Critics say the alleged exploit drained wallets that interacted with the compromised process.

Several wallet providers have reportedly flagged Shade Network’s website as potentially harmful.

Some early promoters have publicly distanced themselves from the project as scrutiny intensified.

Shade Network has not confirmed any wrongdoing or addressed the allegations in detail.

Analysts say transparency and independent technical verification will be critical before user confidence can be restored.

At the time of reporting, Ethereum price was $3,001.76.